Natural Capsules 2023 agm notes
- In process of operationalizing 3 HPMC machines in FY24.
- Exports increased substantially in FY23 due to the good reputation of the company, quality of its products and marketing efforts by the company.
- Growth in FY23 was mostly due to a rise in volumes.
- Margins in FY23 were better due to better realization, higher volumes & high efficiency machines. Higher efficiency machines give better volumes and lower rejections.
- Realizations for capsules are currently at Rs. 100 down from Rs. 112 YoY. In Q4FY23 realizations were around Rs. 98.
- 14-15% are the Sustainable Operating Margins. Capsule prices are down along with the Raw Material prices.
- Erosion of margins will not be to the scale of fall in chemical prices as Finished Goods & Raw Material prices both are down. Some effect will stil be there.
- If China reduces the prices then we will approach the Govt. for anti dumping duty.
- Export to African countries: Had trouble in the past with customers in Nigeria. No exposure to Nigeria now.
- 10% market share currently in Capsules. Earlier it was 5% before expansions.
- Will look at further Capex only after completion of existing expansions.
- API
- In the API plant focus will be to get the facility approved for regulatory markets and increase the product basket over time.
- Status as of now: Completed gram batches & doing kilo batches for 2 molecules.
- Submitted R&D batch samples to few customers. Some customers have asked for commercial batch samples.
- Ramp up will be 30% in Year1 & 50% in Year2.
- Till FY22 Working Capital needs were reduced due to high volume and high demand. FY23 onwards Working Capital has normalized and is higher back to normal levels.
- Acquired few big domestic pharma customers in last 2-3 years.
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